Binance Research Discusses Libra, Facebook’s New Crypto Project
Binance Research, the market research and analysis arm of global cryptocurrency exchange, Binance, discusses Libra, Facebook’s first cryptocurrency, from a technical and analytical perspective along with the potential impacts of this new entrant to the market.
Binance Research’s report “First Look: Libra” assesses the characteristics, functions, and worldwide implications of Libra, Facebook’s stable cryptocurrency backed by a basket of financial assets. This report details how Facebook intends to use the cryptocurrency across its ecosystem, which is being used by 2.4 billion people worldwide, as well as its impact on the overall blockchain environment.
“In the medium term, Facebook can further its place as a provider of open-source tools for digital apps, sites, and e-commerce. Libra could spark additional cryptocurrency volume due to increased accessibility from both institutional players and everyday retail users,” according to Binance Research.
On June 18, Facebook released details about Libra, a stable cryptocurrency backed by a basket of financial assets, which runs on its own blockchain. Beyond the 12-18 months that Facebook will take to incorporate Libra into its services, Binance Research anticipates that the cryptocurrency will have a significant impact on both local and global markets in the medium to long term, across the cryptoasset, financial, and economic landscapes.
Binance Research also identifies several implications of Libra in the long term, including the following:
- Reshaping of the payment industry
- New offerings of financial services
- Advancing greater freedom of money and lowering capital restrictions worldwide
- Un-dollarization of the world
“Eventually, the Libra project may become the first “everyday” implementation of the ideology and theory behind the Special Drawing Rights (SDR) and other IMF/World Bank initiatives, manifested as a cryptocurrency targeting mass adoption by both institutions and individuals,” Binance Research said in its report.
About Binance Research
Binance Research provides professional, data-driven insights and analysis for investors in the crypto space to increase the level of transparency and improve the quality of information within the current crypto ecosystem. The team consists of professionals with a background and experiences in blockchain engineering, investment banking, strategy consulting, academic research and data science. For more information, visit: https://research.binance.com/